Treasurer
Paul Andersen
Summary
•
•
•
•
2011 Draft Financial Results
2012 Q1 Unaudited Results
Reserves
Fees
Financial Results 2011
Draft Audit – pre Board Adaption
• 2011 – Through December 31st
• Registration Revenue
$14,366,665
• IPv4 Registrations
• All Other
•
•
•
•
= $10,393,759
= $ 3,972,971
2011 Expenses
Operating Result
2011 Investment Result
Net to Reserves
$15,062,078
($ 695,423)
($ 355,211)
($1,016,951)
Functional Expense Comparisons
Selected Expense Categories that
had Material Changes
2011
2010
Salaries
$7,228,849
$6,811,920
Depreciation
$1,619,577
$1,327,933
Communications
$ 881,280
$ 675,968
Equipment and Software Support
$ 464,547
$ 414,514
Legal
$1,029,916
$ 434,491
Rent
$ 378,358
$ 430,462
NRO
$
$
All other Line Items
$3,379,483
$3,391,816
$15,062,078
$13,533,449
Total
80,068
46,345
Financial Results 1st Qtr. 2012
• 2012 – through March 31st
• Registration Revenue
• IPv4 Registrations
• All Other
•
•
•
•
$3,666,318
= $2,773,500
= $ 838,845
2012 Expenses
Operating Result
2012 Investment Result
Net to Reserves
$3,589,658
$ 76,660
$1,865,799
$1,942,459
End of Year Reserve Balance
Reserves
$30,000,000.00
$25,000,000.00
$20,000,000.00
$15,000,000.00
$10,000,000.00
$5,000,000.00
Reserves
The S&P 500
Year end 2001 = 1148 & Year end 2011 = 1112
S&P 500
1600
1400
1200
1000
800
S&P 500
600
400
200
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Investment Return History
The Net Investment Gain Since 2000 is $10,700,000
$6,000,000
$4,000,000
$2,000,000
$0
2001 02
-$2,000,000
03
04
05
06
07
08
09
10
11 2012
1st
Qtr.
-$4,000,000
Net Return through March
2012 is 1.8 million or 7%
-$6,000,000
Reserve Policy
• ARIN is to keep 1 to 2 years of operating
expenses in reserve
• Currently at 1.5 of operating expense
– 2012 budget
= 16.92 Million
– Current Reserve = 24.65 Million
• Board would like management to draw reserves
down to one year
– Last 3 years budgets have called for a
reserve draw
Fee Discussion
• Current Fees were established at
ARIN’s inception in 1997
– IPv4 & IPv6 Allocations – recurring renewal
fees annually
– IPv4 & IPv6 Assignments – initial fee, then
minimal maintenance fee
Autonomous System Numbers - $500 initial
fee, then minimal maintenance fee
– Other fees – transfers, membership,
conference fees
The Goals of a New Fee Structure
• Equitable Fees based on costs
• Avoid creating disincentives for adoption of
industry-wide initiatives
• Target a smaller ARIN based on long- term
post-IPv4-runout expenses
• Maintain and reduce where possible costs for
smaller Internet organizations
• Promote open membership structure for those
with bona fide interest
Questions with Current Structure
• Is the $100 maintenance fee paid by end-users for registration
services for any number of IPv4 address blocks of any size
equitable and fair?
– ISPs pay much more annually for the registry services despite very
similar services and workload
– IPv6 registry services fees are the same for end-users & ISPs
• Should we focus on “fee per block” (which best reflects costs)
or relative “fee per IPv4 address/IPv6 network” or somewhere
in between?
• Should paid membership (including vote) be available for
interested parties which do not holder number resources?
Timeline
• Board Strategic Discussion on fee issues
– August 2011 and January 2012
• Staff review of fee goals and issues
– April 2012
• Board request for input from membership
– Today
• FinCom & Board consideration towards initial draft
– July & August 2012
• Request for feedback on proposed changes
– September 2012
• Final Presentation to community
– October Member Meeting 2012
• Target effective date of January 1, 2013
Thank You